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Rebate under 87A - STCG right to property

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sushant

JOB

88 Points Posted on 22 February 2025

I have a query

Pension income 3lakh
STCG on sale of under construction property 7 lakh before possession flat that is

Is it included as in TI which gets taxed at slab rate and would it fall under ambit of 87A rebate? in total making tax liability NIL ? Reading conflicting views on this one

Replies (3)

Quick Summary

This discussion clarifies whether Short-Term Capital Gains (STCG) from selling an under-construction property before possession is taxed at slab rates. It also addresses whether such gains qualify for the Section 87A rebate, which typically applies to total income within a certain threshold. The consensus is that STCG is taxed at slab rates and does not qualify for the 87A rebate.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121546 Points Posted on 23 February 2025

It will be taxes at slab rate. Rebate u/s. 87A not applicable.

sabyasachi mukherjee

Profession

19978 Points Posted on 23 February 2025

SEC 87A IS A SEPERATE SECTION.

Aashok Kumar Sharma

Finance/Compliance Consultant

77177 Points Posted on 14 November 2026

Pension of Rs 3 lakh plus STCG of Rs 7 lakh on selling property rights:

• STCG on property (not under 111A) is taxed at slab rates, as normal income. The 87A bar applies only to special-rate income (111A, 112, 112A). So the rebate is available: under the new regime for FY 2025-26, total income of Rs 10 lakh (pension minus Rs 75,000 standard deduction plus Rs 7 lakh) is below Rs 12 lakh, so nil tax. For FY 2024-25, the limit was Rs 7 lakh.